Oregon is committed to fostering a thriving business environment by offering a variety of tax incentives and financial programs to encourage investment and job creation.  From technology and manufacturing to renewable energy and tourism, the state provides a range of opportunities for businesses to grow and expand.  Below are some of the key incentives available for businesses in Oregon.

Oregon Strategic Investment Program (SIP)

Overview

The SIP provides property tax exemptions to businesses that invest in significant capital projects.  This program is designed to encourage investments in key industries such as manufacturing, research and development, and renewable energy.

Eligibility

• The business must invest at least $25 million in real property improvements.

• The project must create or retain jobs in Oregon, with wages that meet or exceed the local average.

• The business must be located in a qualifying region of the state.

Incentive Value

• SIP provides a property tax exemption for a specified period, typically 15-20 years.

• The amount of the exemption depends on the size of the investment and the number of jobs created.

Application Process

Businesses must apply through the Oregon Business Development Department (OBDD), providing detailed project plans, job creation projections, and expected economic benefits.

Oregon Business Energy Tax Credit (BETC)

Overview

The BETC program is designed to encourage businesses to invest in renewable energy technologies.  This program offers significant tax credits for investments in energy-efficient systems and renewable energy projects, such as solar, wind, and biomass.

Eligibility

• The business must invest in renewable energy technologies or energy efficiency projects.

• The project must meet specific performance standards and contribute to energy savings.

Incentive Value

• The credit is equal to a percentage of the total cost of the energy-efficient or renewable energy equipment installed.

• The credit can be applied to offset Oregon corporate income taxes.

Application Process

Businesses must apply to the Oregon Department of Energy, providing documentation of the project costs and performance data.

Oregon Film and Video Tax Credit

Overview

Oregon offers a Film and Video Tax Credit to attract film, television, and digital media productions to the state. This incentive is designed to encourage production companies to choose Oregon as a filming location, providing tax credits for eligible production costs.

Eligibility

• The production must be a qualified film, television series, or digital media project.

• The project must meet minimum spending requirements on qualified expenditures in Oregon.

Incentive Value

• The tax credit is up to 20% of eligible production costs.

• The incentive applies to direct production costs, such as wages, location fees, and equipment rentals.

Application Process

Film and video producers must apply through the Oregon Film Office, submitting a detailed budget, production plan, and other supporting documentation.

Oregon Enterprise Zones

Overview

Oregon’s Enterprise Zones provide property tax exemptions to businesses that invest in and create jobs in designated areas of the state.  These zones are typically located in economically distressed regions, and the program aims to revitalize these areas through investment and job creation.

Eligibility

• The business must be located in a designated Enterprise Zone.

• The business must make a significant capital investment and create or retain jobs in the zone.

Incentive Value

• The business is eligible for up to 5 years of property tax exemptions on improvements made to the property.

• The value of the exemption depends on the capital investment and job creation.

Application Process

Businesses must apply through the local city or county government, which will submit the application to OBDD for approval.

Oregon Renewable Energy Development Incentives

Overview

Oregon offers several incentives to support renewable energy projects, including wind, solar, and geothermal.  These incentives are designed to encourage businesses to invest in clean energy technologies and contribute to the state’s goal of reducing carbon emissions.

Eligibility

• The business must invest in renewable energy technologies that meet specific performance criteria.

• The renewable energy project must be located in Oregon.

Incentive Value

• The incentives vary by technology but can include grants, tax credits, and performance-based incentives.

• Businesses may be eligible for tax credits or grants based on the size of the investment and the environmental benefits of the project.

Application Process

Businesses must apply through the Oregon Department of Energy, providing detailed project plans, costs, and environmental impact assessments.

Oregon Clean Vehicle Rebate Program

Overview

The Oregon Clean Vehicle Rebate Program incentivizes businesses to invest in electric vehicles and clean energy transportation options.  This program provides rebates to businesses that purchase or lease eligible clean vehicles.

Eligibility

• The business must purchase or lease an electric vehicle or other clean energy vehicle.

• The vehicle must meet specific environmental performance criteria.

Incentive Value

• The rebate amount can vary but typically ranges from $2,500 to $5,000 per vehicle.

• The rebate can be applied to reduce the purchase price of eligible vehicles.

Application Process

Businesses must apply through the Oregon Department of Environmental Quality, providing proof of purchase or lease and details about the vehicle’s environmental performance.

Oregon Research and Development (R&D) Tax Credit

Overview

Oregon offers a R&D Tax Credit to businesses that invest in innovative research projects.  This program is designed to support companies in sectors such as technology, manufacturing, and life sciences, encouraging them to develop new products and processes.

Eligibility

• The business must engage in qualifying R&D activities, such as developing new products, improving manufacturing processes, or conducting scientific research.

• The R&D activities must be conducted in Oregon.

Incentive Value

• The tax credit is based on a percentage of eligible R&D expenditures.

• The credit can be applied to offset Oregon corporate income taxes.

Application Process

Businesses must submit a claim to the Oregon Department of Revenue, providing detailed documentation of R&D activities and expenditures.

Oregon Transportation Infrastructure Tax Credit

Overview

Oregon offers a Transportation Infrastructure Tax Credit to businesses that invest in infrastructure improvements, such as roads, rail, and ports, to enhance transportation efficiency and reduce congestion.

Eligibility

• The business must invest in eligible transportation infrastructure projects that improve access to and from key economic zones.

• The infrastructure must be located in Oregon.

Incentive Value

• The credit is based on the amount of capital investment in transportation infrastructure.

• The credit can be applied to offset corporate income taxes.

Application Process

Businesses must apply through the Oregon Department of Transportation, providing detailed plans for the infrastructure improvements and their expected benefits.